ADGM licenses are structured to support a wide range of financial and professional activities, ensuring businesses operate within a clear regulatory framework. From banks and market makers to asset managers, advisors, and Islamic finance entities, each license category comes with specific capital requirements and permitted activities. Understanding these categories provides company setup in ADGM with insight into the scope of operations, compliance expectations, and the opportunities available within Abu Dhabi Global Market’s dynamic and well-regulated ecosystem. 

Company Setup in ADGM: Key License Categories for Financial and Advisory Businesses 

Category 1 License: Banks 

The Category 1 License is designed for banks with a minimum capital requirement of US$10 million. This license covers activities such as: 

• Accepting deposits 

• Managing Payment Service and Investment Accounts (PSIA) 

This license is ideal for institutions aiming to operate as full-scale banks within ADGM, offering financial products and services under strict regulatory supervision. 

Category 2 License: Market Makers and Credit Providers 

Category 2 License targets market makers and credit providers, with a minimum capital of US$2 million. Key activities include: 

• Trading as a principal 

• Extending credit 

This license suits businesses involved in trading and credit provision while ensuring compliance with ADGM’s robust regulatory framework. 

Category 3 Licenses: Brokerage, Custodians, and Asset/Fund Managers 

ADGM provides specialized Category 3 licenses tailored for various investment activities: 

• 3A License (Brokerage) – Minimum capital US$500,000. Activities include dealing in investments on a matched principal basis or acting as an agent. 

• 3B License (Custodians) – Minimum capital US$4 million. Activities include providing custody services for funds and acting as a trustee. 

• 3C License (Asset and Fund Managers) – Minimum capital US$250,000. Activities include managing assets, overseeing collective investment funds, custodial services, and trust services. 

These licenses cater to companies involved in investment management, fund operations, and brokerage services, providing flexibility while adhering to regulatory standards. 

Category 4 License: Investment and Insurance Advisors 

The Category 4 License is designed for investment and insurance advisors, requiring a minimum capital of US$10,000. Permitted activities include: 

• Organizing investment deals

• Providing credit advice and financial product advice 

• Custody services 

• Insurance intermediation 

• Operating platforms such as crowdfunding 

This license is ideal for smaller advisory firms or fintech startups offering investment or insurance-related services.

Category 5 License: Islamic Finance 

The Category 5 License caters to Islamic finance businesses, with a minimum capital requirement of US$10 million. Activities include operating an Islamic finance business, compliant with Sharia law. This license supports institutions seeking to tap into the growing demand for Sharia-compliant financial services.

How MS Can Help You with Company Setup in ADGM? 

Selecting the right ADGM license is crucial for company setup in ADGM. At MS, we collaborate with licensed local partners to guide businesses through the process, from assessing your activities to recommending the ideal license category. We coordinate approvals, manage documentation, and provide guidance on corporate governance and ongoing compliance. Our strategic advisory ensures your ADGM setup aligns with long-term business goals, allowing you to focus on growth while we handle the regulatory and procedural complexities efficiently.

Abu Dhabi Global Market (ADGM) has rapidly emerged as a premium destination for businesses looking to establish a presence in the UAE. With a unique combination of transparent regulations, international-standard legal frameworks, and strategic regional access, ADGM offers companies a secure and growth-oriented environment. Whether you are a startup, a fintech innovator, or a multinational corporation, ADGM company setup provides not only a credible UAE presence but also a platform to expand across the Middle East, Africa, and Asia. 

Key Advantages of Company Setup in ADGM 

1. Transparent Legal and Regulatory Environment 

ADGM operates under English common law, providing a clear and predictable framework for businesses. This means companies benefit from: 

• Reliable contract enforcement 

• Efficient dispute resolution 

• Enhanced investor confidence 

For international businesses, this legal transparency reduces risk, making ADGM a preferred choice for cross-border operations and long-term investments. 

2. Flexible Company Structures and Ownership 

ADGM allows 100% foreign ownership, giving investors complete control over their business. Companies can choose from multiple structures, such as: 

• Private companies 

• Holding companies 

• Special purpose vehicles (SPVs) 

This flexibility helps businesses tailor their setup to suit operational goals, investor needs, and strategic growth plans. The process of ADGM company setup is streamlined, allowing companies to start operations quickly without bureaucratic delays. 

3. Ideal for Specialized Sectors 

ADGM is particularly attractive for financial services, fintech, asset management, and professional services. The jurisdiction offers: 

• Sector-specific licensing 

• Integrated banking, legal, and advisory support 

• Tax-efficient structures compliant with UAE regulations 

These advantages create a conducive environment for innovation, investment, and sustainable growth. 

4. Strategic Location and Regional Reach 

Situated in the heart of Abu Dhabi, ADGM offers companies access to regional markets in the Middle East, Africa, and Asia. Businesses can leverage this location for: 

• Cross-border trade and partnerships 

• Access to international capital 

• Networking and innovation opportunities 

Startups and tech innovators benefit from dedicated programs, investor networks, and funding opportunities, making ADGM an ecosystem that encourages growth and collaboration. 

5. Simplified Incorporation and Ongoing Support 

Setting up a company in ADGM is straightforward, but ensuring smooth operations requires attention to detail. Companies need to consider: 

• Choosing the right legal entity and license type 

• Meeting corporate governance standards 

• Staying compliant with regulatory requirements 

ADGM’s ecosystem is designed to support businesses throughout their journey, from incorporation to day-to-day operations. With the right advisory partners, companies can navigate approvals, compliance filings, and ongoing regulatory updates efficiently, allowing founders to focus on growing their business rather than administrative hurdles. 

How MS Can Help You with Company Setup in ADGM? 

Setting up a company in ADGM can be a smooth and efficient process when guided by the right expertise. At MS, we work closely with licensed local partners to provide end-to-end advisory support, ensuring your incorporation journey is seamless and compliant. 

We assist in choosing the most suitable company type and license, helping you align your structure with your business goals and long-term strategy. Through our network of partners, we coordinate the entire approval and registration process, saving you time and reducing administrative challenges. 

Beyond company setup in ADGM, we also provide guidance on corporate governance, regulatory compliance, and ongoing operational requirements, so your company remains fully aligned with ADGM rules from day one. By leveraging our advisory expertise and trusted partnerships, we ensure your focus remains on business growth, strategic expansion, and regional opportunities, rather than paperwork or procedural hurdles. 

In recent years, Abu Dhabi Global Market (ADGM) has solidified its position as one of the UAE’s leading international financial centres – a hub designed for innovation, growth, and global connectivity. Located on Al Maryah Island, ADGM operates as an independent jurisdiction with its own civil and commercial laws based on English Common Law, making it one of the most reliable and transparent environments for investors and businesses alike. 

Whether you’re a multinational expanding into the Middle East, a family office structuring regional assets, or an entrepreneur seeking a stable and tax-efficient base, company formation in ADGM provides a unique opportunity to access a globally recognized regulatory ecosystem. 

Why Choose ADGM for Company Formation? 

1. Internationally Recognized Legal Framework 
ADGM’s legal system is founded on English Common Law – a major differentiator that ensures legal clarity, fairness, and consistency. This framework attracts businesses and investors seeking global alignment and a predictable environment for dispute resolution. 

2. 100% Foreign Ownership and Profit Repatriation 
ADGM allows full foreign ownership of companies, enabling complete control over operations and profits. Investors can also repatriate capital and earnings without restrictions – a critical factor for global enterprises and family offices managing international assets. 

3. Tax-Efficient Environment 
Companies in ADGM enjoy 0% personal and capital gains tax. Additionally, qualifying businesses can benefit from UAE’s 0% corporate tax regime applicable to free zone entities that meet specific requirements, offering long-term fiscal advantages. 

4. World-Class Regulatory Oversight 
ADGM’s Financial Services Regulatory Authority (FSRA) maintains a robust yet business-friendly regulatory environment. The FSRA’s framework supports innovation while ensuring high standards of compliance, particularly for financial, fintech, and professional services firms. 

5. Strategic Global Access 
Situated in Abu Dhabi, ADGM connects investors to regional and international markets. Its proximity to global institutions and sovereign investors makes it an ideal hub for raising capital, managing funds, and structuring cross-border operations. 

Company Formation in ADGM: Choosing the Right Structure Matters 

ADGM offers flexibility in entity structures, catering to diverse business needs. Common types include: 

• Private Limited Companies – ideal for commercial and professional services. 

• Holding Companies – commonly used for asset management and investment consolidation. 

• Special Purpose Vehicles (SPVs) – designed for structured finance and investment holding. 

• Foundations – used for wealth preservation and succession planning. 

• Fund and Investment Managers – regulated entities under FSRA supervision. 

Each entity type comes with specific benefits, governance requirements, and licensing conditions, making it essential to have the right guidance during the setup phase. 

How MS Facilitates Company Formation in ADGM? 

At MS, we specialize in simplifying the company formation in ADGM process through our collaboration with trusted partners within the jurisdiction. Our role is to ensure that your entity is structured efficiently, compliant with ADGM regulations, and aligned with your broader business objectives. 

Our support covers: 

Advisory on selecting the most suitable legal structure (SPV, holding company, foundation, etc.) 

• Guidance on ownership, shareholding, and control structures 

• Coordination with partners for document preparation and submission 

• Assistance in meeting ADGM’s regulatory, compliance, and ongoing reporting obligations 

• Post-setup support, including business licensing and governance advisory 

By partnering with MS, you gain a single point of contact backed by a network of experienced ADGM specialists, ensuring that your company formation in ADGM is smooth, efficient, and strategically aligned. 

For businesses looking to expand into the Middle East, ADGM company formation offers an attractive blend of regulatory clarity, strategic location, and operational flexibility. Abu Dhabi Global Market (ADGM) has become a go-to jurisdiction for investors, family offices, and professional service firms seeking credibility, efficiency, and access to international markets. 

Beyond simply establishing a legal entity, ADGM company formation provides a framework to structure operations, manage cross-border investments, and navigate compliance requirements with ease – ll while enjoying the advantages of a tax-efficient and globally recognized financial hub. 

Key Considerations for ADGM Company Formation 

When planning ADGM company formation, businesses need to assess several factors: 

1. Purpose of the Entity 
Your business objectives will influence the entity type. Whether the goal is investment consolidation, fund management, or operational expansion, selecting the right structure is critical. 

2. Regulatory Compliance 
ADGM operates under English Common Law, and regulated entities may fall under the Financial Services Regulatory Authority (FSRA). Understanding licensing, reporting, and governance obligations ensures smooth operations. 

3. Ownership and Control 
ADGM allows full foreign ownership, but shareholding structures must comply with both regulatory and strategic considerations. Careful planning helps avoid governance or operational bottlenecks. 

4. Licensing Requirements 
Different activities require specific licenses, from commercial and professional services to financial services. Proper guidance helps businesses select and obtain the correct license efficiently. 

Start Your ADGM Company Formation with Confidence 

Establishing your business in ADGM  is a strategic step toward regional growth, regulatory credibility, and access to international markets. With MS guiding your ADGM company formation through trusted partners, you can focus on scaling your operations while we handle the complexities of structure, compliance, and setup. 

Take the first step toward your ADGM journey today with MS and our expert partner network. 

The Essentials

Maintaining ADGM QFZP status is key to enjoying a 0% corporate tax rate, but it comes with strict compliance requirements. Audited financial statements play a central role in this process, providing proof of qualifying activities, and adherence to both ADGM and UAE tax regulations. Timely preparation, independent auditing, and accurate filing are essential to avoid losing the tax benefit and incurring penalties.

In ADGM, 0% corporate tax is earned, documented, and verified. For companies holding QFZP status, the key to keeping that advantage lies in audited financial statements.

These are evidence that your business is real, your activities qualify, and your company meets both ADGM and UAE tax standards. Miss the audit, and the benefits vanish, leaving your company exposed to standard corporate tax and penalties.

Let’s break down why audited financial statements are the backbone of ADGM QFZP status and how they safeguard your tax position while reinforcing corporate credibility.

Regulatory Framework for QFZP Audits

Under the UAE Corporate Tax regime and ADGM requirements, all entities electing ADGM QFZP status must produce audited financial statements in compliance with International Financial Reporting Standards (IFRS), regardless of their size or revenue levels.

Key regulations include:

• Ministerial Decision No. 84 of 2025
• ADGM guidance issued in August 2025

These mandates require all taxable persons, including QFZPs, to prepare audited financial statements for each tax period starting 1 January 2025. Audits must be conducted by ADGM-registered auditors, ensuring alignment between ADGM filings and Federal Tax Authority (FTA) corporate tax obligations.

Link Between Audited Financial Statements and ADGM QFZP Status

Audited financial statements are not merely a procedural formality – they are central to maintaining QFZP eligibility. To retain the 0% corporate tax rate, an ADGM entity must:

• Conduct qualifying activities under Cabinet Decision No. 139 of 2023, avoiding excluded or non-qualifying activities.
• Stay below the de minimis threshold for non-qualifying income.
• Prepare and maintain IFRS-compliant audited financial statements annually.

Failure to comply with any of these conditions, particularly the audit requirement, results in automatic loss of QFZP status, exposing the entity to the standard 9% corporate tax rate and potentially backdated tax liabilities.

ADGM QFZP Status: Filing and Compliance Deadlines

ADGM has specified clear deadlines for filing audited financial statements. Filings must satisfy both:

• ADGM Registration Authority requirements (Companies Regulations 2020, Part 9)
• UAE Corporate Tax Law obligations (Federal Decree-Law No. 47 of 2022 and related decisions)

A limited “no-action” relief is available only for the first fiscal period where an audit is required solely for corporate tax purposes. Beyond this, audits are strictly mandatory and non-compliance is not tolerated.

Practical Importance of Audited Financial Statements

Audited financial statements serve multiple tax-related purposes, reinforcing both compliance and transparency:

• Substantiating QFZP eligibility: Confirms that income qualifies for the 0% tax rate.
• Supporting transfer pricing and related-party disclosures: Offers reliable data for regulatory filings and tax reporting.
• Protecting directors and management: Reduces the risk of penalties, fines, and reputational damage.

In short, these audits are critical tool for tax planning, risk management, and regulatory compliance.

Consequences of Non-Compliance

Neglecting the audit requirement can have serious consequences:

• Automatic loss of ADGM QFZP status, removing access to the 0% corporate tax rate.
• Exposure to 9% corporate tax on all income for the current and prior periods.
• Potential penalties under ADGM and Federal Tax Authority regulations.
• Reputational damage that may affect licensing and investor confidence.

Maintaining QFZP status is therefore inseparable from maintaining robust, audited financial statements.

How MS Can Help Earn and Maintain ADGM QFZP Status?

Maintaining ADGM QFZP status requires precise compliance, accurate financial reporting, and timely filings. MS helps businesses go through this process by preparing IFRS-compliant audited financial statements, coordinating with ADGM-approved auditors, and ensuring all submissions meet both ADGM and the UAE corporate tax requirements. Beyond audits, we provide expert guidance on qualifying activities, and related-party transactions, helping your company retain the 0% corporate tax advantage while minimizing regulatory risk. With MS’s support, ADGM entities can achieve compliance efficiently and focus on strategic growth and operational excellence.

The Essentials

The Abu Dhabi Global Market (ADGM) is redefining AML supervision through AI, advanced analytics, and supervisory technology (SupTech), shifting from reactive compliance to a proactive, intelligence-driven model. This transformation extends to virtual assets, staking frameworks, and cybersecurity integration, ensuring innovation is paired with robust oversight. The FSRA’s functional and data-driven approach strengthens ADGM AML compliance, enabling early detection of illicit financial activity, enhancing reporting accuracy, and supporting regulated entities in navigating evolving risks. Firms can leverage expert guidance and MLRO services to maintain operational integrity and align with ADGM’s forward-looking regulatory standards.

As finance becomes increasingly digital and borderless, regulators face the challenge of keeping pace with innovation while safeguarding integrity. The Abu Dhabi Global Market (ADGM) has emerged as a pioneer in this space, transforming ADGM AML compliance through artificial intelligence, advanced analytics, and supervisory technology (SupTech).

By leveraging real-time transaction monitoring, predictive modeling, and machine-learning-based risk assessment, ADGM’s Financial Services Regulatory Authority (FSRA) has shifted from traditional, reactive compliance to a proactive and intelligence-driven regulatory model. This transformation extends beyond conventional finance, encompassing virtual assets, staking frameworks, and cybersecurity integration, ensuring that innovation is matched with robust oversight.

A Digital Transformation in ADGM AML Compliance

ADGM’s adoption of AI-enabled tools, analytics, and supervisory technology (SupTech) has redefined AML supervision. The FSRA employs real-time transaction monitoring, predictive modeling, and machine-learning-based risk scoring, enabling the early identification of illicit financial behavior. These systems reduce false positives, automate compliance reporting, and enhance operational efficiency for institutions operating in the jurisdiction.

By embedding data analytics across regulated entities, ADGM has created an interconnected monitoring network capable of identifying patterns across both traditional and digital financial channels. This approach signals a shift from reactive compliance to proactive detection, aligning with the UAE’s broader agenda of reinforcing its reputation as a clean, innovation-driven financial hub.

Virtual Asset Oversight: A Functional Approach

The FSRA’s Virtual Asset Regulations and accompanying “Guiding Principles” emphasize responsible digital asset innovation while maintaining stringent ADGM AML compliance. A key principle requires firms to avoid any virtual asset transaction where a counterparty’s identity cannot be fully verified, directly addressing anonymity risks inherent in blockchain-based operations.

ADGM’s functional regulatory approach focuses on the economic activity performed, rather than simply the technological form or token classification. This ensures that firms offering novel virtual asset services remain within the regulatory scope, providing visibility over emerging business models and associated AML risks.

The 2025 Virtual Asset Staking Framework

In Consultation Paper No. 10 of 2025, the FSRA introduced a tailored regulatory perimeter for virtual asset staking, clarifying ADGM AML compliance triggers:

• Regulatory activation: Oversight applies when authorised persons hold or control assets for staking on behalf of clients.
• Custodial obligations: Custodians must obtain client consent for staking, and discretionary staking requires a Financial Services Permission (FSP) to manage assets.
• Exemptions: Solo staking, where individuals stake their own assets without intermediation, remains outside regulatory scope.
• Focus: Activities like liquidity mining or yield farming remain unregulated, narrowing AML oversight to staking within proof-of-stake blockchains.

This functional delineation ensures that AML controls target risk-bearing intermediaries rather than individual users, making compliance proportional to exposure.

ADGM AML Compliance: Integration of SupTech and Cyber Oversight

ADGM’s 2025 Cyber Risk Management Framework integrates AML supervision with cybersecurity resilience, reinforcing ADGM AML compliance across regulated entities.. Regulated entities are required to implement real-time data integrity checks, encrypted KYC processes, and adaptive incident reporting. These measures help defend against crypto-related cyber crimes such as ransomware payments or blockchain bridge exploits that can facilitate money laundering.

SupTech platforms consolidate blockchain transaction data with cross-border intelligence, enabling pattern recognition and jurisdictional collaboration. This harmonized data ecosystem ensures traceability across fiat and virtual asset conduits, a critical capability for detecting layering and obfuscation tactics common in crypto laundering schemes.

Strategic Implications for Regulated Firms

The convergence of technology and virtual asset regulation in ADGM presents both opportunities and compliance responsibilities:

• Enhanced reporting accuracy: AI-driven AML screening aligns internal risk models with FSRA analytics.
• Cross-sector collaboration: Firms are encouraged to participate in ADGM’s Financial Crime Prevention program to ensure transparency and intelligence sharing.
• Future-proofing business models: Early compliance with staking and virtual asset obligations positions firms for leadership in the rapidly evolving digital finance ecosystem.

How MS Can Help in ADGM AML Compliance?

At MS, we help ADGM-regulated entities strengthen their AML frameworks and provide outsourced MLRO solutions to meet evolving supervisory expectations with confidence.

Our team works closely with firms to design and implement robust AML policies, establish risk-based controls, and align compliance systems with ADGM’s AI-driven supervisory standards. Through our MLRO services, we ensure your organisation has experienced leadership in overseeing compliance, managing reporting obligations, and responding efficiently to FSRA assessments.

The Essentials 

The ADGM Registration Authority has issued new guidance making audits mandatory for all companies electing Qualifying Free Zone Person (QFZP) status under the UAE Corporate Tax regime. This update impacts businesses of all sizes, removing previous audit exemptions and linking compliance directly to ADGM annual accounts filing. Companies must now use ADGM-registered auditors, file audited accounts with the Registrar, and meet strict filing deadlines. Transitional measures are in place, but timely compliance is critical to preserve tax benefits. 

The Abu Dhabi Global Market (ADGM) Registration Authority has issued new guidance for businesses electing Qualifying Free Zone Person (QFZP) status under the UAE Corporate Tax regime. This update introduces significant changes to audit and filing obligations, and for many companies, it may differ from previous expectations. 

If your business is considering or already holding QFZP status, understanding the new ADGM annual accounts filing requirements is critical to staying compliant and preserving tax benefits. 

ADGM Annual Accounts Filing: What Has Changed for ADGM QFZPs? 

The new guidance makes one point clear: audits are now mandatory for all companies opting for QFZP status. Whether your business is large or small, active or dormant, the exemption from audits no longer applies once you elect to be treated as a QFZP. 

Here are the key updates on ADGM Annual Accounts Filing ADGM company should note: 

1. Audit Now Mandatory for All QFZPs 

Companies that previously enjoyed audit exemptions including small businesses, certain subsidiaries, or even dormant entities must now arrange for audited accounts if they seek QFZP status. 

2. Use ADGM-Registered Auditors 

Only auditors registered with ADGM are permitted to carry out these audits. This ensures consistency with local regulatory standards and enhances the credibility of financial reporting. 

3. All Audited Accounts Must Be Filed 

After completion, audited accounts must be filed with the ADGM Registrar. This filing requirement applies universally, regardless of why the company needed the audit. Simply put, no ADGM annual accounts filing will be accepted without an audit. 

4. Transitional Arrangements in Place 

The ADGM has introduced certain transitional measures to ease the shift. However, businesses remain ultimately responsible for compliance, and the deadlines are approaching quickly. 

Deadlines for ADGM Annual Accounts Filing 

While the audit requirement is new for QFZPs, the obligation to file annual accounts has long been part of ADGM’s compliance framework. Businesses must continue to meet these existing ADGM annual accounts filing deadlines:  

If the first financial year is 12 months or less, annual accounts must be filed within nine (9) months of the Accounting Reference Date (ARD). 

• If the first financial year is more than 12 months, annual accounts must be filed within nine (9) months of the first anniversary of incorporation. 

• Subsequent Annual Accounts (for existing private companies or LLPs): 

• From the second year onwards, accounts must be filed within nine (9) months of the ARD. 

These timelines were already in place but take on greater importance now that all QFZPs must arrange audits before filing. 

How MS Can Help in ADGM Annual Accounts Filing 

At MS, we understand that compliance in ADGM is about ensuring your business continues to benefit from its chosen structure without unnecessary risk. With our strong presence in both ADGM and DIFC, we bring: 

• Expert Guidance on QFZP Status – Helping you assess eligibility and maximize the available corporate tax advantages. 

• Audit & Filing Support – Coordinating with ADGM-registered auditors and ensuring your audited accounts are prepared, reviewed, and filed on time. 

• Compliance Calendar Management – Tracking key dates such as ARD, incorporation anniversaries, and filing deadlines so you never miss a requirement. 

• End-to-End Corporate Services – From incorporation to ongoing governance, we provide a single-source solution tailored to your business needs. 

With filing ADGM annual accounts filing deadlines approaching and audit requirements now universal for QFZPs, MS can help you stay compliant and safeguard your tax position.  

In recent years, the UAE has continuously refined its corporate tax regime to enhance its appeal as a global business hub and a destination for wealth management. Among the latest developments is the introduction of a new tax framework under Ministerial Decision No. 261 of 2024, which takes effect retroactively from June 1, 2023, aimed at making holding companies within Family Foundations even more attractive for asset management and succession planning. 

This move significantly impacts how Holdcos within family foundations are taxed and managed, simplifying compliance while ensuring that UAE remains a leading jurisdiction for family wealth structures. 

The New Tax Transparency Framework for UAE HoldCos within Family Foundations 

Under the new regime, holding companies that are part of UAE Family Foundations can opt to be treated as an Unincorporated Partnership for the purposes of UAE corporate tax (CT). This is a significant shift, as it enables holding companies with assets such as bank accounts, real estate, and portfolios to avoid corporate tax, without having to meet the 12-month holding period requirement that traditionally applied for tax relief. 

Key Benefits:  

• Exemption from Corporate Income Tax: Holding companies will not be subject to UAE CT, provided they are structured as part of the Family Foundation. This is a notable advantage compared to other types of corporate structures. 

• Simplicity in Asset Management: This move simplifies the management of family wealth, particularly in private wealth structures that involve holding assets like real estate or financial portfolios. 

• Flexibility: Families and individuals can better structure their assets, without the complexities of traditional tax relief requirements or corporate tax obligations. 

Simplified Accounting and Audit Compliance for HoldCos within Family Foundations 

The recent changes to UAE tax regulations bring significant ease to the accounting and audit requirements for holdcos within Family Foundations. Previously, businesses in the UAE were required to undergo an annual financial audit and comply with International Financial Reporting Standards (IFRS). However, under the new framework, holdcos within family foundations are no longer subject to these stringent audit requirements. This means that they are not required to conduct an annual audit, which saves valuable time and reduces operational costs. Additionally, holding companies can now adhere to basic accounting standards similar to those used by the family foundation itself, streamlining operations and further reducing the burden of compliance. The removal of the mandatory audit and simplified accounting standards translates into substantial cost savings, allowing families to manage their wealth structures more efficiently. 

DIFC: A Strategic Hub for Family Wealth Management

The Dubai International Financial Centre (DIFC) remains a top choice for families seeking efficient wealth management and succession planning. With its strong global reputation, DIFC provides a secure and compliant environment for structuring family wealth through holdcos within family foundations. The recent regulatory updates simplify succession planning, offering straightforward tools for wealth transfer, while streamlined governance and reduced compliance burdens enhance operational efficiency. These changes make DIFC an even more attractive and flexible solution for families aiming to protect and grow their wealth across generations. 

Building a Lasting Legacy: Tailored Support for Family Foundations by MS 

At MS, we are dedicated to supporting family offices and foundations through this pivotal transition, providing customized strategies that align with your vision for the future. With our expertise, you can confidently take full advantage of the new Ministry of Finance update on Family Foundations, unlocking valuable opportunities even by setting up holdcos within family foundations while protecting your family’s legacy. Let us work with you to establish a resilient and efficient foundation structure that ensures your wealth and values are preserved for generations ahead.